Buying a Foreclosed Home in Sumter, SC Part 3
Last week the posts were about making the offer and then accepting the counter offer from Fannie Mae. Moving forward in the buying process is the ten days inspection period. During this inspection period, the buyer may have the property inspected for any of the types of inspections listed below. Since this is a foreclosure the buyer is responsible for all the inspection costs.
· Termites and other Wood Infestations – very important in South Carolina and required by most lenders. For an investor, just a great idea before you close on the house and realize the termites have been snacking on the wood.
· Licensed Home Inspector – The home inspector will look at structural components, electrical system, plumbing systems, appliances, heat and air system, safety hazards and other miscellaneous items.
· Appraisals- will be required if financing the property with a mortgage. If you are paying cash, either an appraisal or knowing the market in the area. Yes, a real estate agent can help but they are not the final word the way an appraiser would be.
· Survey – review of the plat and property can be done by a surveyor to make sure there are no encroachments on the property (the neighbor borrowing a piece of the property) or you borrowing a piece of the neighbor’s property.
· Title Exam – this is done in South Carolina through your closing attorney and needs to be done before a title is issued. But I always recommend Owner’s Title Insurance so the buyer is covered in case something is missed during the title exam.
It is up the buyer to determine the extent of the home inspections to be completed. For me personally on this home, I am having the Termite Inspection, Home Inspector and purchasing the Owner’s Title Insurance. I am forgoing the appraisal as I know the property needs work and what that work will take off the full retail value of the property. I am also not having the survey as I feel the subdivision has been around long enough there are no current disputes of the boundary and also no neighbor has any building near the lot lines of the property.
Buying a Foreclosed Home in Sumter, SC is an ongoing series of posts, where I am purchasing a foreclosed property to turn into a rental income property. Follow the posts below to experience the entire process with me.